Lower registrations in light vehicles drove decline in total vehicle registrations

Vehicle Registrations July 2017


  Jul 17
Jun 17
May 17
Apr 17

New Registrations
279 300 345 306

The total number of new vehicles registered over the month of July 2017 fell to 279 registrations, 21 registrations (7.0%) lower compared to previous month. This was driven by lower registrations in light vehicles, which declined by 33 registrations (25.0%), followed by a 19 registrations (15.2%) fall in registered cars. The decline in registrations over the month was consistent with a $0.8 million (29.6%) fall in vehicle import payments. However, new taxis and rental vehicles registered in July increased by 22 vehicles due to higher import of new vehicles to replace old taxis & rental vehicles. Additionally, government and heavy vehicle registrations also increased by 3 (33.3%) and 7 (35.0%) respectively over the month.

In year ended July 2017, the total number of vehicle registered rose by 577 registrations (18.6%), reflecting the continued strong demand for vehicles. Majority of the annual rise in registered vehicles were for cars which increased by 258 (20.3%) followed by a 185 (15.4%) rise in light vehicle registrations. The rise in vehicle registrations over the year was in line with the $6.7 million (47.6%) increase in import payments for vehicles recorded in the Overseas Exchange Transactions reports. In addition, vehicle loans rose by $0.2 million over the year which adds to the annual rise. Moreover, the rise in purchasing power of the returning Recognised Seasonal Employees (RSE) may have also contributed to the annual rise. The annual increase in the level of vehicle registrations can also be attributed to the availability of vehicles’ hire purchase, and the convenience of vehicle online purchasing.

Vehicle registrations are projected to rise in the near term. This is supported by the return of Recognised Seasonal Employees from Australia and New Zealand. Furthermore, locals’ preference for second hand cars ordered online from Japan is expected to remain high as the price is cheaper and the road conditions in Tonga are improving, this would support more imports of vehicles in the future.


Resources

Vehicle Registrations - June 2017
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